Responsible use of AI in financial services

Artificial intelligence (‘AI’) involves the use of technology to perform tasks that traditionally required human intelligence. In a recently published article1, McKinsey defines AI as “a machine’s ability to perform the cognitive functions we usually associate with human mind”.

The OECD notes that there is no universally accepted definition of AI. Furthermore, it emphasizes that there is no clear boundary distinguishing AI systems from non-AI machine-based systems, which may exhibit some characteristics typically associated with AI.

As a forward-looking regulator, the Financial Services Commission, Mauritius (‘FSC’) is observing an appetite for the adoption of AI within established financial services institutions and new fintech entities respectively. It is foreseen that the use cases of AI is fast evolving in line with the development of new methods and techniques, in financial service sectors.

This Fintech Series Guidance Notes No 4 (Guidance) explores key considerations surrounding the use of artificial intelligence (AI) in the insurance, wealth management and Non-Banking Financial Institutions (NBFIs) with an emphasis on both consumer protection and best practices.